What is the “right” price? That is the question that bothers many in the property market – both potential buyers as well as sellers. There are many factors that would have been considered before putting the price tag on a property. However, most sellers expect buyers to negotiate on the asking price and to offer a lower price, sometimes up to 5% to 10%. Property sellers in Burnham-On-Sea are no different. Buyers should take note of this. 

Given below are some tips to calculate a reasonable price to offer for a property.

When was it put on the market?  If the property has been for sale for some months, then it is likely that the owners may be getting restless and willing to accept a lower offer. However, if the home has just come on the market, the seller will probably not consider a too-low offer. Research can be conducted to find out how long the house has been on the market. Another tip is to find out how old the property is and how long the seller has been living there.

Has it invited interest?  If many people have shown interest in the property and there have been many surveys, including virtual viewings, the seller is not likely to lower his price a great deal. The estate agent will be able to provide this information, but online research can be done as well and you can keep track of whether or not the viewings increase.

Condition:  Besides a physical viewing and knowing the fittings and fixtures included in the sale, the condition of the building could impact the offer. Ask for documentation regarding the planning permission and completion certificate. Check the EPC rating and GSC (gas safety certificate). In what grade is the property listed? Are there any flood or subsidence problems? Even the internet speed could affect your offer!

How much did the seller pay for it?  These details are available with the Land Registry, including a graph showing how much the estimated price has changed over the last couple of years. Knowing the figure will give you an idea of what the seller may expect and whether it is a fair price.

The local market price:  Comparing prices with other similar homes in the neighbourhood can be helpful. Floor plans and descriptions of the house should be studied and, if the asking price is much higher than the norm, it will give you a chance to put in a lower offer.

Comparison with the national market:  The house price index shows how the locality you are interested in is performing as opposed to the rest of the country. If prices are rising in your area, then lower offers will probably not be accepted. However, if there is less interest in the locality, it offers an opportunity to bid at a lower price.

The reason for selling:  If this is ascertained, it will give you some leeway.  

  • Some sellers may need to move urgently due to various reasons – new employment, divorce, an offer made on another property, selling inherited property (as inheritance tax is due within a certain timeframe) or any other. They will probably consider reduced prices. If not, they may insist on a price closer to the asking one.
  • Other sellers feel they will get a better price if the value of the property goes up – if there are plans for development with modern infrastructure, like a new school, park or leisure centre. Additional transport systems or improvements to roads could add value. Alternatively, any planned new builds would offer competition and negatively affect the price. Industrial development in a residential area may also convince a seller to lower his price.Research in these areas will be helpful.

Flexibility:  If you don’t have a time frame and are a cash buyer, you could adhere to the seller’s wish for either a long completion date or an urgent one, which could result in a discounted price for you.

Conclusion:  The main factor of your offer will be your budget. Once you set a limit on your affordability, the other details such as the type of property will be easier to define. When you have found the perfect place, besides your offer, some of your advantages as the “right buyer” could be highlighted. Being organised with a mortgage Agreement in Principle, a surveyor and a conveyancer lined up, a definite reason for the purchase and documents in order will be assets. If the offer is approved, then ensure that the property is taken off the market, so there is no room for being gazumped. By taking the above into consideration we are sure you will offer the “right price at the right time”!

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